# Bangladesh

 Country code: BD · Currency: BDT · Language: Bengali

**Pros**
- Competitive labor costs and massive workforce for high-scale manufacturing ventures
- Generous tax holidays and fiscal incentives within designated special economic zones
- Expansion of digital connectivity and high growth in mobile-based financial technology sectors

**Cons**
- Systemic corruption and burdensome red tape within government administrative processes
- Unreliable energy supply and logistical bottlenecks for efficient industrial operations
- Weak protection of property rights and frequent state interference in market dynamics

Long story short: In Bangladesh, the administration doesn't bite through rigor, it bites through appetite for cash: every stamp gets negotiated with a bribe.

On the flip side, the economy is humming: young cheap labor, a booming textile sector, and banks that hold steady despite tight capital controls.

Other than that: in Gulshan or Banani, you'll live tucked behind walls and guards, far from the chaos outside. Traffic is hellish, but the food is generous and delta scenery is just a short drive away.

## Will your income be taxed?

Long story short: YES, A LOT.
**Bangladesh** shears personal income hard, peaking at **30%**. Residency rules are the classic kit (day counts, economic ties, habitual abode), so if you actually live here, you hand over the full schedule.

The state shows up early, and with a receipt book.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | 0 → 30% | progressive · 6 brackets |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 3,057 | exempt |
| 3,057 – 5,502 | 10% |
| 5,502 – 8,762 | 15% |
| 8,762 – 12,838 | 20% |
| 12,838 – 29,140 | 25% |
| 29,140 + | 30% |

**01.2 Tax residence test**

_A single active rule is enough to make you tax-resident._

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | exists here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | exists here |  |

## Will your wealth be taxed?

Long story short: YES, BUT LIGHTLY.
Capital gains get off easy in **Bangladesh** (**15%**); the *annual wealth tax* doesn't (top rate **35%**). It nibbles your pile every year, sold or not, and over a long hold the nibbling out-eats the sale tax entirely.

Watch the stock, not just the flow.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | 15% | progressive |
| Dividend tax | 30% | progressive · +10% resident individual without e-TIN · +30% non-resident individual |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 3,057 | exempt |
| 3,057 – 5,502 | 10% |
| 5,502 – 8,762 | 15% |
| 8,762 – 12,838 | 20% |
| 12,838 – 29,140 | 25% |
| 29,140 + | 30% |

| Metric | Value | Detail |
| --- | --- | --- |
| Interest income | 30% | progressive |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 3,057 | exempt |
| 3,057 – 5,502 | 10% |
| 5,502 – 8,762 | 15% |
| 8,762 – 12,838 | 20% |
| 12,838 – 29,140 | 25% |
| 29,140 + | 30% |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | 0 → 35% | progressive · threshold 326,040 |

| Bracket (USD) | Rate |
| --- | --- |
| 0 – 326,040 | exempt |
| 326,040 – 815,100 | 10% |
| 815,100 – 1,630,200 | 20% |
| 1,630,200 – 4,075,500 | 30% |
| 4,075,500 + | 35% |

| Metric | Value | Detail |
| --- | --- | --- |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | UNREGULATED | Fallback rate: 30% · Cryptocurrency is officially prohibited by the Bangladesh Bank (Central Bank) under the Foreign Exchange Regulation Act 1947 and Anti-Money Laundering laws. While no specific crypto tax code exists, the National Board of Revenue (NBR) treats all income as taxable under general progressive income tax rules, which reach a maximum rate of 30% for individuals in the 2024-25 assessment year. Although the activity is illegal, general tax principles in Bangladesh dictate that income from any source is subject to tax. Users risk criminal prosecution, including imprisonment, for possession or trading. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES, BUT TAXED.
Corporate tax in **Bangladesh** lands at a *moderate* **22.5%**, no IP-box to soften it. Standard accounting, VAT at **15**, the usual dose of paperwork. Nothing to celebrate, nothing to flee.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | 22.5% | progressive · +2.5% Company producing all types of tobacco items, including cigarette, bidi, chewing tobacco, and gul |
| VAT standard rate | 15% | single rate · no reduced tiers |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | NO CRIMINAL | no criminal liability · In Bangladesh, which follows a Common Law system, the 'Misuse of Corporate Assets' by a sole shareholder-director of a solvent company is generally not a criminal offense. Under Section 405 of the Penal Code 1860 (Criminal Breach of Trust), the prosecution must prove 'dishonest intent' to cause 'wrongful loss' to another. Since the sole shareholder is the ultimate beneficial owner of the company's residual assets, their consent to the use of funds typically negates the element of dishonesty required for a criminal conviction. Such acts are instead treated as civil breaches of fiduciary duty, tax irregularities (unreported dividends), or accounting violations under the Companies Act 1994. |
| Shareholders privacy | PUBLIC PAYWALL | Registrar of Joint Stock Companies and Firms (RJSC) |
| Directors privacy | PUBLIC PAYWALL | Registrar of Joint Stock Companies and Firms (RJSC) |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Private Limited Company. The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| RJSC Registration and Filing Fees | USD 163 |  |
| Stamp Duty on MOA and AOA | USD 20 |  |
| Trade License and Local Permits | USD 122 |  |
| BIDA Registration Fee | USD 82 |  |
| Professional Legal and Incorporation Services | USD 958 |  |
| Total | USD 1,345 |  |

## A good fit for a holding?

Long story short: NOT REALLY.
**Bangladesh** has a *moderate* **34**-treaty network, but no participation exemption: dividends from subsidiaries land straight in the corporate schedule (**22.5%**).

Fine for operational subsidiaries; as a pure holding base, you're feeding the local taxman at every distribution.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | NONE | no dividend participation exemption regime |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | 20% | non-resident outbound |
| WHT · interest | 20% | non-resident outbound |
| WHT · royalties | 20% | non-resident outbound |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 25 | active |
| Treaties pending | 7 | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Bangladesh** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 5 years | available path to naturalisation |
| Marriage | — | not available |
| Birth | — | not available |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: NO.
Foreign tax offices see next to nothing of what you do in **Bangladesh**: it has signed *few exchange frameworks*.

But the *corporate registries are public*: your shareholdings and directorships are one search away for anyone curious. Invisible from abroad, on display at home.

**Multilateral reporting frameworks — 0/9 active**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | None | — |
| CARF | None | — |
| FATCA | None | — |
| MLI | None | — |
| BEPS | None | — |
| MAAC | None | — |
| GLOBAL FORUM | None | — |
| EOIR | None | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: NO.
**Bangladesh** sits on no major blacklist, though it's *outside* the FATF club.

Some counterparties will run a bit of extra due diligence out of habit, but there's no formal stigma: you won't get hassled for dealing with it.

**Blacklist exposure — Clear everywhere**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Clear | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Clear | low-tax list |

## Do you feel free there?

Long story short: NO.
Press freedom in **Bangladesh** is *locked down* (RSF rank **\#149**). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.

Small mercy: crypto isn't formally banned.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 149/180 | score 33 · ↑ 16 ranks year-on-year |

Central bank digital currency

    Program Status Cross-border Sources     Bangladesh CBDC

Exploring CBDC as an alternative to ‘risky’ private digital currencies.

Bangladesh Bank

   RESEARCH   —   [announce →](https://coingeek.com/bangladesh-exploring-cbdc-as-an-alternative-to-risky-private-digital-currencies/ "Announcement")

 programs 1

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Bangladesh**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**3/11**), but for an online business this is swimming against the current.

**Accept payments — 1/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Not available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 1/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Bangladesh. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Botswana BW  → ](https://stateless.sx/en/country/bw) [   Taiwan TW  → ](https://stateless.sx/en/country/tw) [   Mauritania MR  → ](https://stateless.sx/en/country/mr)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Azerbaijan AZ  → ](https://stateless.sx/en/country/az) [   Moldova MD  → ](https://stateless.sx/en/country/md) [   Timor-Leste TL  → ](https://stateless.sx/en/country/tl)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Burkina Faso BF  → ](https://stateless.sx/en/country/bf) [   Laos LA  → ](https://stateless.sx/en/country/la) [   Liberia LR  → ](https://stateless.sx/en/country/lr)